PFRDA roping in banks to tap NRIs for National Pension Scheme

The Pension Fund Regulatory and Development Authority (PFRDA) is in talks with lenders such as SBI, HDFC Bank, Canara Bank, Indian Bank and several other south India-based banks to tap potential Non-Resident.

Indians to subscribe NPS, PFRDA Chairman Hemant Contractor told reporters here.

“We have started talking to bankers about attracting NRIs to enroll for NPS scheme. We see NRIs as very attractive market for NPS. We would like to push for NPS for the NRIs,” Contractor said.

PFRDA has brought various policy changes recently to make NPS more subscriber friendly.

With the government allowing an investment of up to Rs 50,000 in NPS as a tax saving instrument, Contractor said it has given a filip to the scheme and expressed optimision about growing subscriber base in view of the large potential.

He said the Atal Pension Yojana (APY), which presently has about 3.5 lakh subscribers since its launch in early June has also given the much-needed impetus to the social security schemes.

However, he was doubtful over meeting the target of covering 2 crore subscribers under APS by December.

Further, on the recommendations of the Bajpai committee on investment pattern guidelines for NPS in the private sector, he said the report is under consideration and PFRDA has constituted two sub-groups that will submit their findings in about 10 days.

“The report of the two sub-committees are expected to be out in 10 days. And then we can decide how far to go about in taking the Bajpai committee recommendations,” he said.

Further, on other developments on the NPS, he said it now includes the provision of partial withdrawal facility.

“The subscriber can withdraw 25% of his contribution after 10 years of joining for certain purposes like education, marriage of children, construction, purchase of house etc.”

They would be allowed for a maximum of three withdrawals with a gap of five years between two withdrawals.

The subscriber can defer the withdrawal of lump sum amount up to 70 years of age and can also defer annuity purchase for three years after maturity. Also, now the subscriber under NPS private sector can continue to deposit up to 70 years of age.